Sy-led conglomerate SM Investments Corp. (SMIC) booked double-digit earnings growth in the first quarter of 2023 amid strong contributions across its businesses.
In a disclosure to the Philippine Stock Exchange on Wednesday, SMIC reported a net income of P17.3 billion during the period, up 33% from P13 billion last year.
Consolidated revenues stood at P138.2 billion, up 21% from P113.8 billion in the same period last year.
“This year has started well, continuing the strong momentum of 2022. We are well positioned for continued growth and prepared for any macroeconomic uncertainties. Meanwhile, the whole group is pushing ahead with regional expansion plans to serve more Filipinos,” said SMIC president and CEO Frederic CDyBuncio.
SMIC said banking accounted for 47% of reported net earnings from core businesses, followed by property at 26%, retail at 17%, and portfolio investments at 10%.
BDO reported a net income of P16.5 billion during the period, up 41%, boosted by solid loan and deposit growth, robust fee income generation, and improved asset quality.
China Banking Corp., likewise, booked a P5.0 billion net income for the first quarter, up 3%, driven by strong asset base expansion, strong net interest income, and lower credit provisions.
SMIC’s property arm, SM Prime Holdings, registered a net income of P9.4 billion, up 27% from P7.4 billion year-on-year, as Philippine mall business revenues increased 88% to P15.4 billion from P8.2 billion.
SM Prime’s rental income at local malls increased 72% to P13 billion with the hike in tenant sales and foot traffic and the full charging of rental fees implemented since the second half of 2022.
The residential business group, led by SM Development Corp. (SMDC), booked P8.5 billion, down 29%, partly due to canceled sales as an effect of high inflation and rising domestic interest rates.
Revenues from offices, hotels, and convention centers grew 59% to P3.2 billion.
SM Retail, meanwhile, saw a net income of P3.9 billion, up 51% from P2.6 billion a year ago amid improving employment, which continued to support spending. —VBL, GMA Integrated News